What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-04-02 compared with 2024-03-28 · 111 added, 105 removed, 185 unchanged (54% of the section changed)

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We position our Galleries as showrooms for our brand, while our websites and Sourcebooks act as virtual and print extensions of our physical spaces, respectively.

We operate our retail locations throughout the United States, Canada, the United Kingdom and Germany.

We have an integrated RH Hospitality experience in 16 of our Design Gallery locations, which includes restaurants and wine bars, and we operate both a restaurant and a Champagne & Caviar Bar at the RH Guesthouse New York.

We operate our retail locations throughout the United States and Canada as well as in the United Kingdom, Germany,

Belgium and Spain and we have an integrated RH Hospitality experience in 21 of our Design Gallery locations, which includes restaurants and wine bars.

Key Value-Driving Strategies

In order to achieve our long-term strategies of Product Elevation, Platform Expansion and Cash Generation as well as drive growth across our business, we are focused on the following key strategies and business initiatives:

In order to achieve our long-term strategies of product transformation, platform expansion and cash generation as well as drive growth across our business, we are focused on the following key strategies and business initiatives:

Product Elevation .

We believe we have built the most comprehensive and compelling collection of luxury home furnishings under one brand in the world.

Our products are presented across multiple collections, categories and channels that we control, and their desirability and exclusivity has enabled us to achieve strong revenues and margins.

Our customers know our brand concepts as RH Interiors, RH Contemporary, RH Modern, RH Outdoor, RH Beach House, RH Ski House, RH Baby & Child, RH TEEN and Waterworks.

Our products are presented across multiple collections, categories and channels that we control, and we believe their desirability and exclusivity have enabled us to achieve strong revenues and margins.

Our customers know our brand concepts as RH Interiors, RH Modern, RH Contemporary, RH Outdoor, RH Beach House, RH Ski House, RH Baby & Child, RH TEEN and Waterworks.

Our strategy is to continue to elevate the design and quality of our product.

With the recent launch of the fall RH Interiors and RH Contemporary Sourcebooks, we have begun the introduction of the most prolific collection of new products in our history, which will continue into next year.

Beginning with the mailing of our RH Interiors Sourcebook in the fall of 2023 and with additional Sourcebook mailings throughout 2024, we have introduced the most prolific collection of new products in our history.

In addition, over the next few years, we plan to introduce RH Couture, RH Bespoke and RH Color.

Gallery Transformation .

Our product is elevated and rendered more valuable by our architecturally inspiring Galleries.

Our products are elevated and rendered more valuable by our architecturally inspiring Galleries.

We believe our strategy to open new Design Galleries in every major market in North America will unlock the value of our vast assortment, generating an expected annual revenue opportunity for our business of $5 to $6 billion.

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RH England marked the beginning of our global expansion beyond North America.

Additionally, we are creating bespoke experiences like RH Yountville, an integration of Food, Wine, Art & Design in the Napa Valley;

Additionally, we offer bespoke experiences like RH Yountville, an integration of Food, Wine, Art & Design in the Napa Valley;

RH1 & RH2, our private jets;

and RH3, our luxury yacht that is available for charter in the Caribbean and Mediterranean, where the wealthy and affluent visit and vacation.

These immersive experiences expose new and existing customers to our evolving authority in architecture, interior design and landscape architecture.

These immersive experiences expose both new and existing customers to our evolving authority in architecture, interior design and landscape architecture.

FORM 10-K | 1

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We believe that our luxury brand positioning and unique aesthetic have strong international appeal, and that pursuit of global expansion will provide RH with a substantial opportunity to build over time a projected $20 to $25 billion global brand in terms of annual revenues.

Our view is that the competitive environment globally is more fragmented and primed for disruption than the North American market, and there is no direct competitor of scale that possesses the product, operational platform, and brand of RH.

As such, we are actively pursuing the expansion of the RH brand globally.

Our plans include launching a number of international locations in the United Kingdom and Europe, which began with the opening of RH England, The Gallery at the Historic Aynho Park, in June 2023;

followed by the November 2023 openings of RH Munich, The Gallery on Sendlinger Strasse, and RH Düsseldorf, The Gallery on the Königsallee;

as well as RH Brussels, The Gallery on Boulevard de Waterloo, in March 2024.

We have secured a number of locations in various markets in the United Kingdom, continental Europe and Australia, including in Madrid, Paris, London, Milan and Sydney.

As such, we are actively pursuing the expansion of the RH brand globally, which began with the opening of RH England, RH Munich and RH Düsseldorf in 2023, followed by the opening of RH Brussels in March 2024 and RH Madrid in June 2024.

We are also under construction in Paris, London and Milan in inspiring spaces that will celebrate the heritage of the historic structures and will integrate full expressions of our hospitality experiences.

In addition, we plan to open RH Sydney, The Gallery in Double Bay, in Australia in the coming years.

Digital Reimagination .

Our strategy is to digitally reimagine the RH brand and business model both internally and externally.

Internally, our multi-year effort began with the reimagination of our Center of Innovation & Product Leadership to incorporate digitally integrated visuals and decision data designed to amplify the creative process from product ideation to product presentation.

Internally, our multiyear effort began with the reimagination of our Center of Innovation to incorporate digitally integrated visuals and decision data designed to amplify the creative process from product ideation to product presentation.

Externally, our strategy comes to life digitally through The World of RH, an online portal where customers can explore and be inspired by the depth and dimension of our brand.

Launched in the spring of 2022, The World of RH includes rich, immersive content with simplified navigation and search functionality, all designed to enhance the shopping experience and render our product and brand more valuable.

We expect to continue to elevate the customer experience on The World of RH with further enhancements to content, navigation and search functionality.

We believe an opportunity exists to create similar strategic separation online as we have with our Galleries offline, reconceptualizing what a website can and should be.

We are making meaningful investments to elevate and differentiate our online experience with plans to upgrade our website throughout 2025.

Products and Product Development

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We collaborate with our global network of specialty vendors and manufacturers to produce artisanal pieces of high quality and value on a large scale, including both distinctive original designs and reinterpretations of antiques.

Facility —We have built the RH Center of Innovation & Product Leadership, a facility that supports the entire product development process from product ideation to presentation across all channels.

Facility —We have built the RH Center of Innovation, a facility that supports the entire product development process from ideation to presentation across all channels.

Our proprietary organization, process and facility enhance our ability to introduce more new products with each collection.

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Sales Channels

We distribute our products through a fully integrated sales platform comprising our retail locations, including RH Galleries and Waterworks Showrooms, in addition to our websites, Sourcebooks, Trade and Contract, and Outlets.

We believe the level of integration among all of our channels and our approach to the market distinguish us from other retailers.

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Retail Locations

As of February 3, 2024, our retail locations comprise RH Galleries and Waterworks Showrooms:

AVERAGE LEASED SELLING

As of February 1, 2025, our retail locations comprise RH Galleries, RH Interior Design Office and Waterworks Showrooms:

AVERAGE SELLING

SQUARE FOOTAGE (1)

North America

Design Galleries (2)

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Baby & Child and TEEN Galleries

Total Galleries

Interior Design Office

Total RH retail locations—North America

Europe Design Galleries

Total RH retail locations

Waterworks Showrooms

Total retail locations

(1) Average leased selling square footage is calculated based on total leased selling square footage divided by total locations.

Leased selling square footage is retail space at our retail locations used to sell our products, as well as space for our restaurants and wine bars.

Leased selling square footage excludes backrooms at retail locations used for storage, office space, food preparation, kitchen space or similar purpose, as well as exterior sales space located outside a retail location, such as courtyards, gardens and rooftops.

(1) Calculated based on total selling square footage divided by total locations.

Selling square footage is retail space at our retail locations used to sell our products, as well as space for our restaurants and wine bars.

Selling square footage excludes backrooms at retail locations used for storage, office space, food preparation, kitchen space or similar purpose as well as exterior sales space located outside a retail location, such as courtyards, gardens and rooftops.

(2) We have an integrated RH Hospitality experience in 21 of our Design Galleries and in our one RH Guesthouse.

Our Galleries reinforce our luxury brand aesthetic and are highly differentiated from other home furnishings retailers.

We have revolutionized the customer experience by showcasing products in a sophisticated lifestyle setting, consistent with the imagery and product presentation featured on our websites and in our Sourcebooks.

We have revolutionized the customer experience by showcasing products in a sophisticated lifestyle setting, consistent with the imagery and product presentation featured within our websites and Sourcebooks.

Products in our Galleries are presented in fully appointed rooms, emphasizing collections over individual pieces.

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We pursue a market-based sales strategy whereby we assess each market’s overall sales potential and how best to approach the market across all of our channels.

We maximize our gallery square footage, as well as Sourcebook circulation, to capitalize on each market’s sales potential and increase our return on invested capital.

We maximize our retail location square footage, as well as Sourcebook circulation, to capitalize on each market’s sales potential and increase our return on invested capital.

We believe our integrated RH hospitality experience, which includes restaurants and wine bars, has created a unique retail experience that cannot be replicated online, and that the addition of hospitality drives incremental sales of home furnishings in these Galleries.

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We have identified key learnings from our real estate transformation that have supported the development of a multi-tier market approach described below that we believe will optimize both market share and return on invested capital.

First, we have architected Design Galleries to be innovative and flexible formats that enable us to more quickly place our disruptive product assortment and immersive retail experience into the market.

We will continue to innovate based on key learnings from more recent Design Gallery openings.

Most of our Design Galleries have approximately 30,000 to 40,000 leased selling square feet, inclusive of our integrated hospitality experience, presenting our product assortments across our businesses, and containing interior design offices and presentation rooms where design professionals work with clients on their projects.

Examples of these types of Galleries include RH Cleveland, The Gallery at Pinecrest, which opened in March 2024, and RH Palo Alto, The Gallery at Stanford, which we plan to open in 2024.

FORM 10-K | 3

First, we have strategically designed our Design Galleries as innovative and adaptable formats, allowing us to accelerate the introduction of our disruptive product assortments and immersive retail experiences into the market.

We will continue to refine and evolve these formats based on key insights from recent openings, such as RH Palo Alto and RH Newport Beach.

Most Design Galleries encompass approximately 30,000 to 50,000 square feet of selling space, seamlessly integrating our hospitality offerings while showcasing our product collections across multiple categories.

These Galleries also house interior design offices and presentation rooms where our designers collaborate with clients to bring their projects to life.

Second, we will continue to develop and open larger bespoke Design Galleries in the top metropolitan markets, similar to those we opened in New York, Chicago and San Francisco.

These iconic locations are highly profitable statements for our brand, and we believe they create a long-term competitive advantage that will be difficult to duplicate.

We opened our Bespoke Design Gallery, RH England, The Gallery at the Historic Aynho Park, in June 2023 and plan to open additional Bespoke locations across the U.S.

and Europe in the coming years, including RH New Jersey, The Gallery at the Historic Alnwick Hall and RH Paris, The Gallery on the Champs-Élysées.

These iconic locations reinforce our long-term competitive advantage and establish a market presence that we believe is difficult to replicate.

We opened our first bespoke international location, RH England, The Gallery at the Historic Aynho Park, in June 2023, and we plan to further expand this concept across the U.S.

Upcoming bespoke locations include RH Paris, The Gallery on the Champs-Élysées and RH London, the Gallery in Mayfair.

Third, we will continue to open smaller scale Design Galleries and bespoke Design Galleries in neighborhoods, towns and small cities where the wealthy and affluent live, visit and vacation.

These locations are thoughtfully tailored to reflect the local culture and are proportionate to each market’s potential.

Examples include RH Yountville and RH Montecito, along with forthcoming openings in Aspen and Manhasset.

Additionally, we debuted our first Interior Design Office in Palm Desert, California, in December 2024.

The pace of our Gallery openings is influenced by multiple factors, including market conditions and strategic priorities.

We also continue to extend our international footprint, with agreements in place for Design Galleries in select markets outside of North America, including France, the United Kingdom, Italy and Australia.

This global expansion aligns with our broader vision of establishing RH as a leading luxury lifestyle brand worldwide.

4 | FORM 10-K

Third, we will continue to open Bespoke Galleries in the best second-home markets where our Galleries are tailored to reflect the local culture and are sized to the potential of each market.

Examples of current Bespoke Galleries include our location in Yountville, California, as well as our Galleries under development in Montecito, California and Aspen, Colorado.

Finally, we believe there is an opportunity to address new markets locally by opening Design Studios in neighborhoods, towns and small cities where the wealthy and affluent live, visit and vacation.

We have several existing locations that validate this strategy in East Hampton, Los Gatos, Pasadena and our former San Francisco Gallery in the Design District, where we have generated annual revenues in the range of $5 to $20 million in 2,000 to 5,000 square feet.

We have secured our first new location for a Design Studio in Palm Desert, California, which we plan to open in the second half of 2024.

The cadence of our Gallery openings depends upon a number of factors.

We plan to continue to expand our product sales to additional international markets and have signed agreements for Design Galleries in several locations outside of North America, including the United Kingdom, France, Spain, Italy and Australia.

We opened RH Brussels, The Gallery on the Boulevard De Waterloo, in March 2024, and plan to open RH Madrid, The Gallery at Plaza del Marqués de Salamanca, in fiscal 2024.

We are also under construction in London, Paris and Milan in inspiring spaces that will celebrate the heritage of the historic structures and will integrate full expressions of our hospitality experiences.

In addition, we have received local approvals for the development of RH Sydney, The Gallery in Double Bay.

The following tables present our retail location metrics:

Our retail location square footage metrics and activity were as follows:

SELLING SQUARE

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RH Design Galleries

England Design Gallery

Munich Design Gallery

Düsseldorf Design Gallery

Indianapolis Design Gallery (relocation)

San Francisco Design Gallery

Newport Beach

Indianapolis (relocation)

RH Legacy Galleries

Detroit Legacy Gallery (relocation)

Short Hills Legacy Gallery (relocation)

San Francisco Legacy Gallery

Troy Legacy Gallery (relocation)

Waterworks Showrooms:

Atlanta Showroom (relocation)

Newport Beach

Mission Viejo

Santa Barbara

Detroit (relocation)

Short Hills (relocation)

RH Baby & Child and TEEN Gallery

RH Interior Design Office

Waterworks Showroom

Atlanta (relocation)

End of period

Total leased square footage at end of period (2)

Weighted-average leased square footage (3)

Weighted-average leased selling square footage (3)

(1) Leased selling square footage is retail space at our retail locations used to sell our products, as well as space for our restaurants and wine bars.

Leased selling square footage excludes backrooms at retail locations used for storage, office space, food preparation, kitchen space or similar purpose as well as exterior sales space located outside a retail location, such as courtyards, gardens and rooftops.

Total square footage at end of period (2)

FORM 10-K | 5

Leased selling square footage includes approximately 56,000 square feet as of fiscal 2023 related to two owned retail locations.

(2) Total leased square footage includes approximately 100,000 square feet as of fiscal 2023 related to two owned retail locations.

(3) Weighted-average leased square footage and leased selling square footage are calculated based on the number of days a retail location was opened during the period divided by the total number of days in the period.

In addition to the retail locations, we operate one RH Guesthouse with approximately 13,800 selling square footage.

(1) Represents retail space at our retail locations used to sell our products, as well as space for our restaurants and wine bars.

Excludes backrooms at retail locations used for storage, office space, food preparation, kitchen space or similar purpose, as well as exterior sales space located outside a retail location, such as courtyards, gardens and rooftops.

Includes approximately 89,000 square feet as of fiscal 2024 related to three owned retail locations and approximately 56,000 square feet as of fiscal 2023 related to two owned retail locations.

(2) Includes approximately 142,000 square feet as of fiscal 2024 related to three owned retail locations and approximately 100,000 square feet as of fiscal 2023 related to two owned retail locations.

Weighted-average square footage and selling square footage are calculated based on the number of days a retail location was opened during the period divided by the total number of days in the period, and were as follows:

(in thousands)

Weighted-average square footage

Weighted-average selling square footage

In addition to the retail locations, we operate one RH Guesthouse with approximately 13,800 selling square feet.

The following list shows the number of retail locations in each U.S.

state and foreign country where we operate as of February 1, 2025:

Massachusetts

District of Columbia

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United Kingdom (1)

Massachusetts

(1) The United Kingdom retail locations include an RH Design Gallery and a Waterworks Showroom.

We continually analyze opportunities to selectively consolidate retail locations in connection with openings of our Design Galleries or close retail locations that have been under-performing or are no longer consistent with our brand positioning.

In many cases, we continue to operate a retail location until our lease has expired in order to affect the closure in a cost-efficient manner.

Our primary RH websites, rh.com, rhbabyandchild.com and rhteen.com , provide our customers with the ability to purchase our merchandise online.

We sell Waterworks products online through waterworks.com .

In many cases, we continue to operate a retail location until our lease has expired in order to effect the closure in a cost-efficient manner.

Our primary RH websites, rh.com, rhbabyandchild.rh.com and rhteen.rh.com , provide our customers with the ability to purchase RH merchandise online.

Waterworks products are sold online through the waterworks.com and rh.com websites.

6 | FORM 10-K

Our websites allow our customers to experience the unique lifestyle settings reflected in our Sourcebooks and throughout our Galleries and Showrooms, and to shop all of our current product assortment.

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Customers can search the websites for products by size or color, browse through our extensive product categories and see detailed information about each item and collection, such as dimensions, materials and care instructions.

Additionally, customers can select color swatches and view merchandise displayed with different color and fabric options.

FORM 10-K | 5

Additionally, customers can select swatches and view merchandise displayed with different color, finish and material options.

We produce a series of catalogs, which we refer to as Sourcebooks, to showcase our merchandise assortment.

Our Sourcebooks include RH Interiors, RH Contemporary, RH Modern, RH Outdoor, RH Beach House, RH Ski House, RH Baby & Child, RH TEEN and RH Rugs.

Our Sourcebooks include RH Interiors, RH Contemporary, RH Modern, RH Outdoor, and RH Baby & Child and TEEN.

Our Sourcebooks are one of our primary branding and advertising vehicles.

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Our Sourcebooks also feature profiles of select artisan vendors and other compelling editorial content regarding home décor.

All creative work on our Sourcebooks is coordinated in-house in our RH Center of Innovation & Product Leadership, providing us greater control over the brand image presented to our customers, while also reducing our Sourcebook production costs.

We distribute our Sourcebooks throughout the U.S.

and Canada, in the United Kingdom, and in countries where we operate within the European Union.

All creative work on our Sourcebooks is coordinated in-house in our RH Center of Innovation, providing us greater control over the brand image presented to our customers, while also reducing our Sourcebook production costs.

We distribute our Sourcebooks throughout countries in which we operate.

Our customers respond to the Sourcebooks across all of our channels, with sales trends closely correlating to the assortments that we emphasize and feature prominently in our Sourcebooks, Galleries and websites.

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We also sell directly to consumers who make purchases with the assistance of their residential interior designer or decorator.

Our Contract business supplies products to large-scale, luxury hospitality, commercial and residential development projects globally, working directly with hotel ownership groups and brands, commercial property owners, single-family and multi-family builders and developers and their ecosystem of architecture, interior design and purchasing business partners.

Our Contract channel supplies products to large-scale, luxury hospitality, commercial and residential development projects globally, working directly with hotel ownership groups and brands, commercial property owners, single-family and multi-family builders and developers and their ecosystem of architecture, interior design and purchasing business partners.

These channels enable us to reach new business customers and the consumers they influence.

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As of February 1, 2025, we operated 40 outlet stores, including one outlet location in the United Kingdom.

FORM 10-K | 7

Marketing and Advertising

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RH England, The Gallery at the Historic Aynho Park;

and RH3, our luxury yacht that is available for charter.

6 | FORM 10-K

RH Yountville, an integration of Food, Wine, Art & Design in the Napa Valley;

RH1 & RH2, our private jets available for charter;

and RH3, our luxury yacht available for charter.

The highly differentiated design aesthetic and environment of our Galleries drives customer traffic not only to our physical spaces but also to our websites.

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We also participate in a wide range of other marketing, promotional and public relations activities.

These campaigns include media coverage in design, lifestyle, culture/society and specialty publications, as well as in-Gallery events related to new Gallery openings and product launches.

These campaigns include media coverage in design, lifestyle, culture/society and specialty publications, as well as in-Gallery events related to new Gallery openings.

In addition, we engage in print advertising in brand-relevant publications such as Architectural Digest, Elle Decor, T:

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The RH Members Program reimagines and simplifies the shopping experience.

For an annual fee, the RH Members Program provides a set discount every day across the RH brand, excluding RH Hospitality and Waterworks, in addition to other benefits, including complimentary design services through the RH Interior Design program and eligibility for preferred financing plans on the RH Credit Card.

For an annual fee, the RH Members Program provides a set discount every day on products available on the RH platform, in addition to other benefits, including complimentary design services through the RH Interior Design program and eligibility for preferred financing plans on the RH Credit Card.

The RH Members Program excludes purchases through Outlets, Trade, Contract and Hospitality, as well as directly from Waterworks.

The RH Members Program allows our customers to shop for what they want, when they want, and receive the greatest value, which has resulted in orders and sales being more evenly distributed throughout the year.

During fiscal 2024, our members drove approximately 98% of sales in our core RH business, and we had approximately 265,000 members at year-end.

Our core RH business reflects the product categories that the membership discount can be applied to, and, as a result, sales generated via Outlet, Contract, Hospitality or Waterworks are excluded.

We believe our membership model enhances the customer experience, renders our brand more valuable, improves operational execution and reduces costs.

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In fiscal 2024, we sourced 77% of our purchase dollar volume from 28 vendors, and one vendor accounted for 16% of our purchase dollar volume.

Based on total dollar volume of purchases for fiscal 2023, 66% of our products were sourced from Asia, including 30% from Vietnam, 22% from China and the remainder predominantly from India and Indonesia, as well as 14% from the United States and the remainder from other countries.

Based on total dollar volume of purchases for fiscal 2024, 72% of our products were sourced from Asia, including 35% from Vietnam, 23% from China and the remainder predominantly from Indonesia and India, 18% from North America, including 10% from the United States, as well as 10% from Europe and other countries.

In addition, we operate a manufacturing facility in North Carolina that produces a number of our upholstery collections.

Distribution and Delivery

We manage the distribution and delivery of our products through our distribution centers.

We currently operate three furniture fulfillment centers and one small-parcel fulfillment center servicing RH products, which are located strategically in four markets throughout the United States.

We currently operate four fulfillment centers servicing RH products, which are located strategically in markets throughout the United States.

We have one fulfillment center in the United States servicing Waterworks products.

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We operate portions of our home delivery services in 27 key markets to leverage operating costs and improve our customers’ delivery experience, while reducing returns and damage to our products.

We offer a white glove home delivery service for our larger merchandise and furniture categories, where third-party personnel deliver fully assembled items to the location of our customers’ choice.

We offer a white glove home delivery service for our larger merchandise and furniture categories, where third-party personnel deliver smaller items to the location of our customers’ choice.

We believe we have dramatically enhanced the customer experience while reducing return rates, damages and deliveries per order by enhancing the quality of our delivery providers through metric-based accountability standards.

8 | FORM 10-K

We believe our supply chain and fulfillment operations allow us to manage customer orders and distribute merchandise to our customers in an efficient and cost-effective manner, and we continue to identify opportunities to improve the delivery of our products.

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We also believe that our success depends in substantial part on our ability to originate and define product trends, as well as to timely anticipate, gauge and react to changing consumer demands.

FORM 10-K | 7

We compete with a number of home furnishings retailers, including national and regional businesses, as well as new market participants that operate predominantly online.

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However, many smaller specialty retailers may lack the financial resources, infrastructure, scale and national brand identity necessary to compete effectively with us.

As we expand our business globally, we will face new competitors .

We are a vision-led organization with a company-wide commitment to our core values of People, Quality, Service and Innovation.

Our values are brought to life by our employees, whom we refer to as our team members.

We believe that our culture is unique and attracts highly talented individuals aligned with our core values.

Our success and future growth depend upon the continued commitment to our values and culture, which can be seen and felt across all parts of our organization.

RH is an equal opportunity employer, and we believe in meritocratic hiring.

Our goal is to have the right person in every position throughout our organization.

We strongly believe our performance is enhanced by a workforce composed of individuals with diverse backgrounds, skills and experience that align with the needs of our business, culture and values.

We have a policy that prohibits us from discriminating against any applicant or team member and this policy governs all aspects of employment, including recruitment, hiring, training, promotion, compensation, discipline, job assignments, benefits, transfer and discharge.

We believe that our commitment to diversity is demonstrated by the composition of our workforce.

We are committed to operating our environments with the highest standards that ensure the safety, health and well-being of our team members and guests.

We require our vendors to adhere to our Vendor Code of Conduct, which can be found on the Investor Relations section of our website, located at ir.rh.com under “Governance — Environmental, Social & Governance.”

Certain headcount data is set forth in the following table:

As we continue to expand our business globally, we will face new competitors .

RH is guided by our vision, values and beliefs, which shape our culture, inform our decisions and drive our long-term strategy.

As a vision-led organization, we are committed to our core values—People, Quality, Service, and Innovation.

Our unique culture is embodied by our team members and reflected in everything we do.

Our success and future growth rely on our dedication to these values, which shape every facet of our organization.

RH is an equal-opportunity employer committed to meritocratic hiring.

Our goal is to ensure the right person is in every role across our organization.

We believe that a workforce that reflects a range of skills, experiences and backgrounds aligned with our culture, values and business needs, enhances our performance.

Our distinctive culture attracts highly talented individuals who share our core values.

Our commitment to equity is upheld through a strict non-discrimination policy governing all aspects of employment, including recruitment, hiring, training, promotion, compensation, job assignments, benefits, transfers, discipline and discharge.

We are committed to maintaining the highest standards to ensure the safety, health, and well-being of our team members and guests in every environment we operate.

We also hold our vendors to these same principles, requiring adherence to our Product Partner Code of Conduct, which can be found on the Investor Relations section of our website at ir.rh.com under “Governance—Environmental, Social & Governance.”

Certain headcount data was as follows:

(approximate)

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(1) None of our team members are represented by a union, and we have had no labor-related work stoppages .

FORM 10-K | 9

Environmental, Social and Governance

Our environmental , social and certain other governance efforts are implemented through our environmental, social and governance (“ESG”) programs, which are designed to align our approach to ESG issues with the interests of our people, customers and shareholders and their respective ESG concerns and can be found on our Investor Relations section of our website, which is located at ir.rh.com under “Governance—Environmental, Social & Governance”.

Further details regarding our ESG programs can be found on the Investor Relations section of our website, located at ir.rh.com under “Governance—Environmental, Social & Governance.”

Intellectual Property

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Each of our trademark registrations is perpetually renewable provided that we use or continue to use the trademarks in commerce in the particular geographic market and for the goods or services covered by the registration.

In addition, we own many domain names, including “rh.com,” “restorationhardware.com,” “rhmodern.com,” “rhbabyandchild.com,” “rhteen.com,” “rhbeachouse.com,” “rhskihouse.com,” “rhguesthouse.com,” “waterworks.com” and others that include our trademarks.

In addition, we own many domain names, including rh.com , restorationhardware.com , rhmodern.rh.com , rhbabyandchild.rh.com , rhteen.rh.com , rhbeachouse.com , rhskihouse.com , rhguesthouse.com , waterworks.com and others that include our trademarks.

These domain names are perpetually renewable.

8 | FORM 10-K

We own design patents or pending design patent applications to protect the ornamental appearance of several of our products.

These design patents are valid for 15 years from their date of issuance.

We own copyrights, including copyright registrations or pending applications, for our website and our Sourcebooks.

These design patents are generally valid for 15 years from their date of issuance.

We own copyrights, including copyright registrations or pending applications, for our websites and our Sourcebooks.

We believe that our trademarks, domain names, design patents, and copyrights have significant value, and we vigorously protect them against infringement.

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Where You Can Find More Information

We are required to file or furnish annual, quarterly and current reports, proxy statements and other information as required by the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the SEC.

The SEC maintains a website that contains reports, proxy statements and other information about issuers, like us, who file electronically with the SEC at sec.gov .

10 | FORM 10-K

We maintain public internet sites at rh.com and restorationhardware.com and make available, free of charge, through these sites our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements and Forms 3, 4 and 5 filed on behalf of directors and executive officers, as well as any amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

The charters for our Board of Directors’ Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee, as well as our Code of Business Conduct, our Corporate Governance Guidelines and Code of Ethics governing our chief executive and senior financial officers and other related materials are available on our websites.

The charters for our Board of Directors’ Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee, as well as our Code of Business Conduct, our Corporate Governance Guidelines and Code of Ethics for Chief Executive Officer and Senior Financial Officers and other related materials, including press releases and other information about financial performance, are available on our websites.

We may use our websites as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.

The information on our websites is not part of this Annual Report.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business